Outsourcing 'needs better planning, full investment'

The productivity of a company could take a hit if it does not commit fully to outsourcing, it has been explained.

Interviewing a number of experts in business management software to understand why many firms use outsourcing, Carol Lewis of the Times found that many are undermining their own investment by not committing the necessary funds to such a technological upgrade.

London School of Economics and Political Science outsourcing director Leslie Willcocks, said many are influenced by the recession and are trying to negotiate for a system based on 80 per cent investment, noting that to do that, a system must be tailored to do less.

"They pushed the problem on to the supplier and I suspect this could be quite dirty further down the line when they seek to unravel those contracts because you can't cut costs by 20 per cent if you're offering a service unless you are not doing certain things," it was added.

Ms Lewis noted that many firms are also using multiple providers to save money on purchases of such things as resource scheduling software, though this can cause a conflict.

Gartner recently highlighted how a forward-thinking company can use resources already available to it in conjunction with things such as customer relationship management, thus cutting the costs of the organisation down the line.

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